1. Management Roles, Functions, and Skills
Chapter 7

2. Chapter 7 Objectives After studying this chapter, you will be able to:
Explain the importance of management and identify the three vital management roles.
Describe the planning function and outline the strategic process.
Describe the organizing function and differentiate among top, middle, and first-line management.

3. Chapter 7 Objectives Cont.
Describe the leading function, leadership style, and organizational culture.
Describe the controlling function and explain the four steps in the control cycle.
Identify and explain five important types of managerial skills.

4. Managerial Functions
Planning
Organizing
Leading
Controlling .

5. Managerial Roles
Interpersonal
Informational
Decisional

6. Managerial Roles Interpersonal roles:
Management is largely a question of getting work accomplished through the efforts of other people. Including;
Providing leadership to employees
Building relationships
Acting as a liaison between groups and individuals both inside and outside the company
12-6 6

7. Managerial Roles Informational roles:
Managers spend a fair amount of time gathering information from sources both inside and outside the organization. They also distribute information to employees, other managers, and other stakeholders.
12-7 7

8. Executive Dashboards
12-8 8

9. Managerial Roles Decisional roles:
From deciding how to respond to a customer complaint to deciding whether to acquire another company or develop a new product line, managers up and down the organizational ladder face an endless stream of decisions.
12-9 9

10. The Planning Function
Planning: Establishing objectives and goals for an organization and determining the best ways to accomplish them.
Develop Strategies
or Success
Set Goals and
Objectives
Develop Action
Plans

11. Strategic Planning Process

12. Define Mission, Vision, and Values
Mission Statement A brief statement of why an organization exists; in other words, what the organization aims to accomplish for customers, investors, and other stakeholders
Vision Statement A brief and inspirational expression of what a company aspires to be
Values Statement
A brief articulation of the principles that guide a company’s decisions and behaviors

13. SWOT Analysis

14. SWOT
Strengths are positive internal factors that contribute to a company’s success
Weaknesses are negative internal factors that inhibit the company’s success
Opportunities are positive external situations that represent the possibility of generating new revenue
Threats are negative forces that could inhibit a firm’s ability to achieve its objectives
12-14
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15. Develop Forecasts Qualitative Forecasting Quantitative Forecasting
Intuitive
Judgments
Consumer
Research
Historical
Data
Statistical
Computations
Qualitative Forecasts
Based on intuitive judgments
Quantitative Forecasts:
Typically based on historical data or tests and often involve complex statistical computations

16. Competitive Analysis SWOT Analysis Internal Strengths Weaknesses
External
Opportunities
Threats

17. Establishing Goals and Objectives
Boosts Motivation
Broad, Long-Range
Target or Aim
Goals
Objectives
Specific, Short-Range
Guides Activity
Sets Standards
Clarifies Expectations

18. Establishing Goals and Objectives
Specific
Measurable
Attainable
Relevant
Time limited
SMART

19. Develop Action Plans
Tactical Plans: Plans that define the actions and the resource allocation necessary to achieve tactical objectives and to support strategic plans.
Operational Plans: Plans that lay out the actions and the resource allocation needed to achieve operational objectives and to support tactical plans.

20. Action Plans Tactical Operational (1 – 3 years) (less than 1 year)
12-20 20

21. Facilities and Equipment Resource Distribution
Organizing
Organizing: The process of arranging resources to carry out the organization’s plans.
Employee Activities
Facilities and Equipment
Decision Making
Supervision
Resource Distribution
12-21 21

22. The Management Pyramid

23. The Management Pyramid (cont.)
Top Managers: Those at the highest level of the organization’s management hierarchy. Responsible for setting strategic goals, and they have the most power and responsibility in the organization.
Middle Managers: Those in the middle of the management hierarchy. They develop plans to implement the goals of top managers and coordinate the work of first-line managers.
First-line Managers: Those at the lowest level of the management hierarchy. They supervise the operating employees and implement the plans set at the higher management levels.

24. Leading
Cognitive Intelligence: Involves reasoning, problem solving, memorization, and other rational skills.
Emotional Intelligence: Measure of a person’s awareness of and ability to manage his or her own emotions.
Social intelligence: Involves looking outward to understand the dynamics of social situations and the emotions of other people, in addition to your own.

25. Leadership Styles

26. Leadership Styles (cont.)
Autocratic leaders make decisions without consulting others. “My way or the highway” summarizes this style.
Democratic leaders delegate authority and involve employees in decision making.
Laissez-faire leaders take the role of consultants, encouraging employees’ ideas and offering insights or opinions when asked.
12-26
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27. Leadership Styles (cont.)
Participative Management :
A philosophy of allowing employees to take part in planning and decision making.
Employee Empowerment
Granting decision-making and problem-solving authorities to employees so they can act without getting approval from management.
12-27
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28. Leadership Tasks Coaching Mentoring Meeting with employees
Discussing problems
Offering suggestions
Encouraging solutions
Guiding employees
Explaining office politics
Serving as role models
Providing valuable advice

29. Managing Change Identify What Needs to Change Identify Forces
Present
Situation
Process
of Change
New
Situation
Identify What
Needs to Change
Identify Forces
For and Against
Change
Select the Best
Approach
Reinforce and
Monitor Behavior

30. Organizational Culture
Organizational Culture: A set of shared values and norms that support the management system and that guide management and employee behavior.
Company Values
People
Community
Communication
Employee
Performance

31. Creating the Ideal Culture in Your Company

32. Creating the Ideal Culture in Your Company

33. The Controlling Function
Controlling: The process of measuring progress against goals and objectives and correcting deviations if results are not as expected.
Monitoring Progress
Resetting The Course
Correcting Deviations

34. The Controlling Cycle
Standards: Criteria against which performance is measured
Benchmarking: Collecting and comparing process and performance data from other companies

35. Crisis Planning Contingency Plans Communication Open Corporate
Power Struggles
Environmental
Accidents
Operational
Breakdowns
Product
Failures

36. Essential Management Skills
Interpersonal Skills: Skills required to understand other people and to interact effectively with them.
Technical Skills: The ability and knowledge to perform the mechanics of a particular job.
Administrative Skills: Technical skills in information gathering, data analysis, planning, organizing, and other aspects of managerial work.
Conceptual Skills: The ability to understand the relationship of parts to the whole.
Decision Making Skills: The ability to identify a decision situation, analyze the problem, weigh the alternatives, choose an alternative, implement it, and to evaluate the results.

37. Decision-Making Process

38. Applying What You’ve Learned
Explain the importance of management and identify the three vital management roles
Describe the planning function and outline the strategic planning process
Describe the organizing function and differentiate among top, middle, and first-line management

39. Applying What You’ve Learned (cont.)
Describe the leading function, leadership style, and organizational culture
Describe the controlling function and explain the four steps in the control cycle
Identify and explain five important types of managerial skills